"Economic Policy Review" Bulletin ISSN 1313 - 0544

Bulgaria got a 68th place in The Economic Freedom Around the World, Annual report 2008, prepared by the Canadian Institute "Fraser" and distributed in Bulgaria by the Institute of Market Economics. According to this report, by taking into account the changes in methodology and recalculation for the previous years, Bulgaria has moved upwards by 6 places from the last year’s 74th position.

The National Statistics Institute announced officially the preliminary data about the Gross Domestic Product (GDP) during the second quarter and respectively the first half of 2008. At the same time, however the situation on the international financial markets worsened significantly, as some of the largest investment banks got into a very difficult position and the main indices are falling sharply.

It became apparent, during this week that, a new contract between the government and the Bulgarian State Railroads (BSR) is imminent for providing public service of transporting passenger within the country. The current ten years contract expires at the end of 2008. Naturally, according to the rules of the game, the Government announced a procedure for selection of a new railroad carrier. In that procedure there is naturally only one participant – BSR and logically they won...

Bulgaria moved one place back, according to the prestigious ranking of the World Bank – Doing Business 2009 and is now on 45th place out of 181 countries. The index assesses the conditions for making business in the different countries according to 10 parameters, which cover the period April 2007 – June 2008. Last year Bulgaria moved 8 places forward as a result of the reforms which were undertaken to improve the business environment through: lower taxes and the possibility to pay “on-line”, the introduction of the private bailiffs, which improved the execution of the contracts and reduction of bureaucracy in the area of building supervision...

This week the minimal levels for social security payments for 2009 have been agreed; where the average minimal income for social security payments would reach 370 levs, while during 2008 it was 292 levs. This news is extremely important for many of the employers (and the employees as well) in the country, who again would find the necessary “reference point”. What does it mean actually?

At the beginning of October, invited by IME, Mr. Jose Pinera would arrive in Sofia. He started the privatization of the pension system in Chile in 1981. We are convinced that this is the proper way for Bulgaria as well and for that reason we offer this brief information about the Chilean reform. On our web page you could find the pension calculator, which shows beyond any doubt that the pensions in a private capital pension system are significantly greater than the pensions with the expense coverage system...